Our website uses cookies and other technologies so that we can remember you and understand how you and other visitors use our website. By continuing to browse this Site, you are agreeing to our use of cookies. Click here for more information on our Cookie Policy, including how you may control the information we collect about you through cookies.
Read MoreAccept

Hong
Kong retained its status as the world’s most expensive retail market in Q1
2015, although overall the retail market is expected to continue to
shrink and leasing activity is expected to slow further. Several markets in
Asia Pacific actually recorded prime rental growth, including Tokyo, Melbourne,
Sydney, Ho Chi Minh City, Wellington, and Manila. However, retail leasing
activity in the region has weakened further as retailers turn more cautious.

VIEWPOINT KEY HIGHLIGHTS:

Five out of the top ten most expensive prime retail markets are located in Asia Pacific

Hong Kong retained its status as the world’s most expensive prime retail market in Q1 2015 followed by New York and London. Tokyo, Melbourne, Sydney and Beijing also feature in the top ten ranking

Hong Kong’s retail environment weakened further in Q1 2015 and retail sales in January and February contracted by 2.0% y-o-y. This is attributed to changes in tourist spending patterns and concern over the outlook of visitor arrivals

Overall prime street shop rents in Hong Kong declined by 0.7% in Q1 2015, having edged down by 0.2% in Q4 2014

In the coming quarters, leasing demand is expected to be driven mainly by fast fashion or mid-market brands which are gaining popularity among both locals and tourists

Mr Joe Lin, Executive Director, Retail
Services, CBRE Hong Kong, commented, “The Hong Kong retail market recorded
a mild slowdown in leasing activity in the first quarter, and the retail
sentiment has further deteriorated in the second quarter. The severe decline in
the sales of luxury products such as watches and jewelry continued to curb
expansionary demand from top-tier brand retailers. Therefore it is observed
that landlords are becoming flexible towards rents. We foresee rents to go down
in the second half of 2015.”

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.